EFF, ANC target DA’s Mark Burke over R4bn crypto company allegations

The EFF and the ANC have leveled serious allegations against the Democratic Alliance (DA) over its fintech company, Kastelo, owned and chaired by DA MP Mark Burke. According to the allegations, Kastelo allegedly circumvented South Africa's exchange control regulations to siphon off R4 billion. This comes after the Johannesburg High Court dismissed Kastelo's appeal to unfreeze its bank accounts while the Reserve Bank investigates the fintech company.

The Reserve Bank's affidavit against Kastelo paints a picture of serious financial misconduct. The investigation claims that Kastelo allegedly used clients' discretionary and foreign investment allowances, often without their knowledge, to move funds offshore for its own benefit. The bank alleges that Kastelo opened offshore bank accounts in clients' names and misrepresented its activities in compliance declarations submitted to the central bank.

The allegations are particularly damaging for Burke, who serves as the DA's federal finance chairperson and sits on the DA's federal executive responsible for internal financial controls and accountability. He also serves on committees overseeing national appropriations and finance in Parliament. The EFF has called the allegations "not a paperwork error, but the unauthorised use of other people's money and identities, the concealment of offshore accounts, and deception of the central bank. That is financial crime, plain and simple."

The ANC Parliamentary Caucus has called for Burke's immediate removal from Parliament's finance-related committees following the allegations. The caucus spokesperson, Cde Hlengiwe Hadebe, stated that Burke's continued role on finance committees is "simply untenable" given the Reserve Bank's affidavit. She added that Parliament cannot demand accountability from the Reserve Bank while tolerating a conflict of interest in its own oversight structures.